Telefónica obtained a net attributable profit of 1,344 million euros in the first nine months of 2019, which is 50.6% less than the 2,721 million euros it earned in the same period of the previous year, as reported by the company, which explains that this decrease is due to the provisions for restructuring expenses, mainly in Spain due to the impact of the new voluntary leave plan.

Specifically, the results of the first nine months of the year include a provision of 1,876 million euros, of which 1,732 million euros correspond to its subsidiary in Spain in which it has carried out a new Individual Employment Suspension Plan ( PSI). In this way, the net profit excluding these extraordinary impacts reaches 2,588 million euros.

The revenues of the Spanish multinational were between 36.023 million euros between January and September, which represents an increase of 0.7% compared to 35.776 million euros in the first nine months of 2018, although in organic terms the Rebound in turnover increased to 3.6%. This increase is due to the improvement in Spain, Brazil and Germany, the strong performance of the United Kingdom and despite the negative impact of currencies.

For its part, the gross profit before depreciation (Oibda) in the first nine months of the year stood at 11,450 million euros, 4.9% less in reported terms, but 1.1% more in organic terms, while the operating profit (Oi) was 3,622 million euros, 33.6% less in reported terms and 1.6% less in organic terms.

In the third quarter of the year, Telefónica recorded a net loss of 443 million euros, compared to the 1,139 million euros it earned a year ago, while its turnover increased 1.7% in reported terms and 3.4 % in organic terms, up to 11,902 million euros.

On the other hand, the net debt of the group has been reduced for the tenth consecutive quarter, reaching 38.293 million euros at September 30, representing a decrease of 8.1% compared to a year ago. Including events after September 30, the debt would be approximately 37.6 billion euros.

Digital transformation

"Telefónica continues to show solid and profitable revenue growth in a quarter marked by the strong performance of our main markets: Spain, Brazil, Germany and the United Kingdom. The strong generation of free cash continues, which increases 40% year-on-year in the first nine months of the year and is the main factor of the debt reduction, which falls for the tenth consecutive quarter, "said the CEO of Telefónica, José María Álvarez-Pallete.

Specifically, he stressed that the company has advanced in its strategic initiatives aimed at simplifying its business, including the restructuring program in Spain, as well as in its plans to monetize its mobile infrastructure. In addition, he added that they are sharing networks for a more efficient use of them and have reached agreements with new partners to enrich their commercial value offer at home.

"In the future, we reiterate our goals for 2019 and we are confident that our digital transformation will boost the results and provide us with the best technological solutions for our customers," said Álvarez-Pallete, who stressed that the company continues to focus on the deployment of Next-generation networks in all its markets, improving 4G coverage and with the selective launch of 5G, as it has just done in the United Kingdom.

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  • Spain
  • Telefonica
  • United Kingdom
  • Germany
  • Brazil
  • José María Álvarez-Pallete

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